Historical Development of Marginal Costing Marginal cost is the change in the total cost that arises when the quantity produced has an increment by unit. That is‚ it is the cost of producing one more unit of a good. In general terms‚ marginal cost at each level of production includes any additional costs required to produce the next unit. The concept of marginal utility grew out of attempts by economists to explain the determination of price. The term “marginal utility”‚ credited to the Austrian
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Marginal Costing vs Absorption Costing Marginal Costing and Absorption Costing are methods which are often used to prepare profit statements‚ value inventory and assist in pricing decisions. The methods have some notable differences‚ which can be reconciled though. Absorption Costing absorbs all manufacturing/production costs into inventory valuation. These costs include direct material‚ direct labour‚ direct expenses‚variable production overheads‚ as well as fixed production overheads. On the
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each product but must be ‘shared’ between all of the items produced by a business. There is more than one costing method that can be used to apportion these costs and‚ therefore‚ there may be more than one answer to the question: ‘How much does a product cost to produce?’ contribution costing method that only allocates direct costs to cost/profit centers not overhead costs. This approach to costing solves the problem of how to apportion or divide overhead costs between products – it does not apportion
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F3.3 – LIMITING FACTORS • a factor that causes popn growth to decrease • two basic types: 1. density-independent factors 2. density-dependent factors 1. Density-independent factors • an abiotic event that affects all popn’s in the same way‚ regardless of popn density • e.g. fires‚ earthquakes‚ storms‚ temperature extremes… 2. Density-dependent Factors • a biotic interaction that varies in its effect on popn size‚ depending on the density of the popn involved • have greater impact on denser popn’s
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BPK 310 – Assignment 1 UNIT 1 Question 1 (5 marks): Discuss the rate-limiting factor. Why is it important to consider when studying exercise physiology and training? Provide one example to clarify your understanding. The rate-limiting factor is the “step” that limits performances (the “slow step”). If we know the rate-limiting step in a certain physiological pathway or training situation‚ we can manipulate the factors of this step to change and increase the rate of the pathway. This will improve
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[pic] Photosynthesis Outline Terms and Vocabulary Autotroph Photosynthesis Photon Pigment Chloroplast Reaction Center Electron Donor Molecule Electron Transport System Ferredoxin NADPH RuBP PGA Cuticle Stomata Rubisco Photorespiration C4 Pathway Concepts 1. What are two Adaptations of plant leaves for capturing light? 2. Describe the properties of Light Energy in terms of energy and wavelength. 3. Why are Pigments important for Photosynthesis? 4. What
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MARGINAL COSTING AS A COSTING SYSTEM Marginal Costing is a type of flexible standard costing that separates fixed costs from proportional costs in relation to the output quantity of the objects. In particular‚ Marginal Costing is a comprehensive and sophisticated method of planning and monitoring costs based on resource drivers. Selecting the resource drivers and separating the costs into fixed and proportional components ensures that cost fluctuations caused by changes in operating levels‚ as
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Factors Limiting Photosynthesis The rate of photosynthesis increases with increasing light intensity. But too much light intensity can slow down the rate of photosynthesis because the light damages chloroplasts in the leaf. The higher the temperature the greater the rate of photosynthesis as photosynthesis is a chemical reaction and chemical reactions increase with temperature. But at temperatures above 40 C the rate slows down because the enzymes involved are destroyed
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Chapter 5: Activity-Based Costing MULTIPLE CHOICE QUESTIONS 1. Consider the following statements regarding traditional costing systems: I.Overhead costs are applied to products on the basis of volume-related measures. II.All manufacturing costs are easily traceable to the goods produced. III.Traditional costing systems tend to distort unit manufacturing costs when numerous goods are made that have widely varying production requirements. Which of the above statements is (are) true? A. I only. B. II
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Full Cost Pricing Selling price arrived at by adding overheads and profit margin to the direct cost per unit of a product. In a manufacturer’s overheads computation‚ less than full capacity utilization of the plant is factored in to allow for fluctuations in the output. The profit margin is computed as a fixed percentage of the average total cost of the product. Pricing - full cost-plus pricing Full cost plus pricing seeks to set a price that takes into account all relevant costs of production
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